EDR Stock Sets Up On Entertainment Rebound – Investor's Business Daily

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Endeavor Group Hldg Cl A

Endeavor Group Hldg Cl A

EDR

$0.14 0.47% 107%

IBD Stock Analysis

  • Shares currently in a cup base with a buy point of 33.30
  • Stock has a Composite Rating of 98 out of a possible 99
  • EPS Rating is 97 out of 99; Relative Strength Rating is 71

Composite Rating

Industry Group Ranking

Emerging Pattern

Cup

* Not real-time data. All data shown was captured at 1:26PM EST on 11/18/2021.

Endeavor Group Holdings (EDR), the talent agency and entertainment and events giant run by Hollywood mogul Ari Emanuel, is the IBD Stock of the Day. EDR stock was setting up in a base as of Thursday.

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The setup arrives as Endeavor, a recent initial public offering, reported third-quarter results earlier this week and beat expectations. The company said live events and other forms of entertainment returned following a year of coronavirus restrictions on sports, film and TV production. Endeavor’s assets include the mixed martial arts competition known as UFC, the Miss Universe pageant and the WME talent agency.

The company also forecast full-year sales that were above estimates. Shares climbed 0.5% to close at 29.65 on the stock market today.

The stock was in a cup base with a 33.30 buy point. EDR stock has a Composite Rating of 98. Its EPS Rating is 97.

Endeavor began trading in April. That debut came after the company filed go public in 2019 but later withdrew the IPO, citing weak market demand.

EDR Stock: Results Beat Estimates

The company on Monday reported third-quarter revenue of $1.39 billion. That was above FactSet estimates for $1.32 billion. Endeavor earned 16 cents per share, better than estimates for a three-cent per-share loss.

Endeavor also raised its full-year sales forecast to between $4.89 billion and $4.95 billion. That was up from a prior range of $4.8 billion to $4.85 billion. Wall Street expected $4.904 billion. EDR stock jumped after the report.

Endeavor had more than 6,400 employees as of last year. It operates in 28 nations.

The company draws sales from three segments. Its sports properties segment includes UFC. Its events, experiences and rights segment includes events it runs — including the Miami Open and New York Fashion Week — as well as media rights and sports-video programming and data. Endeavor’s talent representation segment includes WME.

Pent-Up Demand For Entertainment

Emanuel, during the earnings call for Endeavor stock analysts on Monday, cited “pent-up demand for entertainment,” a strong showing for UFC’s pay-per-view events. 

“While reopening rates continue to vary geographically, we are seeing increased activity across all lines of our business,” he said. “Linear and digital platforms are in a race for more content, creating an uptick in television and film productions.”

“Meanwhile,” he continued, “our talent representation business excluding music and theater is up double digits this quarter versus third quarter 2019. And we have room for more optimism as Broadway recently reopened and music artists (are) commencing multiyear tours in large venues.”

He also called out “the attractive prospects of sports betting” — another one of its businesses. Emanuel noted that the pandemic drove more people to bet online, and that more U.S. states had legalized betting. Endeavor in September agreed to acquire OpenBet, a sports-betting tech company, from Scientific Games (SGMS) for $1.2 billion. 

Aside from EDR stock, Disney (DIS) lost 1% on Thursday. ViacomCBS (VIAC) fell 2.2%. Live Nation (LYV) gave up 2.2%. Fox Corp. (FOX) was down 0.7% to 37.28, retreating from a 40.61 buy point on a cup-with-handle base.

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